A Company Is Evaluating Three Possible Investments What Is the Accounting Rate of Return for Project B

A company is evaluating three possible investments. Each uses the straight-line method of depreciation. Following information is provided by the company: $\begin{array}{|l|r|r|r|} \hline& \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Investment } & \$ 230,000 & \$ 54,000 & \$ 230,000 \\\hline \text { Residual value } & 0 & 12,000 & 36,000 \\\hline \text { Net cash inflows: } & & & \\\hline \text { Year 1 } & 56,000 & 38,000 & 94,000 \\\hline \text { Year 2 } & 56,000 & 29,000 & 64,000 \\\hline \text { Year 3 } & 56,000 & 25,000 & 74,000 \\\hline \text { Year 4 } & 56,000 & 22,000 & 34,000 \\\hline \text { Year 5 } & 56,000 & 0 & 0 \\\hline\end{array}$ What is the accounting rate of return for Project B? (Round your answer to two decimal places.)

A) 38.14%
B) 26.19%
C) 54.55%
D) 51.83%